06/23/2026
Many homes are underinsured right now, and most homeowners don’t realize it.
Over the past few years, the cost to rebuild a home has increased significantly. Higher material prices, labor shortages, and supply chain disruptions have changed what it actually costs to repair or replace property after a loss.
According to the Insurance Information Institute and data referenced by the National Association of Insurance Commissioners (NAIC), many homes across the U.S. are currently insured for less than their true replacement cost, even when the policy hasn’t changed.
This can happen gradually. Renovations, rising construction costs, and changes in building codes can all increase the cost to rebuild, but coverage limits don’t always keep pace automatically.
That’s why reviewing your coverage regularly matters, especially in today’s market. At BakerHopp, we work with our clients to make sure policies reflect current replacement costs, not outdated numbers. The goal is simple: if a loss happens, coverage should work the way you expect it to.
A quick review now can prevent a difficult surprise later.